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01/11 04:07
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with a 509% increase in revenue and a significant reduction in net loss. The company has a strong cash position and aims for profitability with less investment than competitors, indicating financial health. The Q&A section did not reveal major concerns and maintained positive sentiment, although some details were withheld. The company's technological advancements and strategic partnerships add to the positive outlook. Despite some uncertainties in customer adoption and error correction, the overall sentiment is positive, likely leading to a stock price increase in the short term.
Revenue $15,000,000, an increase of $12,500,000 or 509% from $2,500,000 in Q1 FY24, driven by the sale of an Advantage two quantum computing system to the Ulex supercomputer center.
Bookings $1,600,000, a decrease of $2,900,000 or 64% from $4,500,000 in Q1 FY24, with professional services bookings comprising more than 50% of the first quarter bookings.
GAAP Gross Profit $13,900,000, an increase of $12,200,000 or 736% from $1,700,000 in Q1 FY24, due primarily to the higher margin Advantage two system sale.
Non-GAAP Gross Profit $14,000,000, an increase of $12,200,000 or 644% from $1,900,000 in Q1 FY24, influenced by the higher margin Advantage two system sale.
GAAP Gross Margin 92.5%, an increase of 25.2% from 67.3% in Q1 FY24, reflecting the higher margin from the Advantage two system sale.
Non-GAAP Gross Margin 93.6%, an increase of 17% from 76.6% in Q1 FY24, driven by the higher margin from the Advantage two system sale.
Net Loss $5,400,000 or $0.02 per share, compared to a net loss of $17,300,000 or $0.11 per share in Q1 FY24, with the lower net loss driven primarily by the $12,200,000 increase in gross profit.
Adjusted EBITDA Loss $6,100,000, a decrease of $6,800,000 or 53% from $12,900,000 in Q1 FY24, primarily due to the year-over-year increase in revenue and associated gross profit, partially offset by higher operating expenses.
Cash Position $304,300,000, a record cash position as of March 31, indicating a solid financial position.
Shareholders' Equity $207,400,000, a record level of shareholders' equity at the end of the first quarter.
Advantage 2 Quantum Computer: The Advantage 2 Quantum Computer has achieved important milestones, including calibration of 4,400+ qubit processor chips, demonstrating double coherence time, a 40% increase in energy scale, and increased qubit connectivity.
Hybrid Quantum Solver: New hybrid quantum solver capabilities introduced, now supporting problems with up to 2,000,000 variables, including integer and continuous variables.
Open Source Toolkit: Launched an open-source toolkit in D Wave’s Ocean SDK to accelerate quantum AI and machine learning innovation.
Market Demand: Strong interest in the LEAP Quantum Launchpad program, with the first customer intending to convert from free trial to paid engagement in less than two months.
Customer Applications: Ford Autothon developed a hybrid quantum application in production, reducing scheduling time from 30 minutes to less than 5 minutes.
Record Revenue: Q1 revenue reached a record $15,000,000, a 509% increase from the previous year.
Cash Position: Closed the quarter with a record $304,300,000 in cash, sufficient to reach profitability.
Partnerships: Engaged with several blockchain-focused organizations for potential partnerships.
Product Roadmap: Progress on product roadmap focusing on rapid innovation and scaling, including increased connectivity and coherence.
Competitive Pressures: D-Wave faces significant competition in the quantum computing space, particularly from companies focusing on gate model quantum computers. The CEO noted that the U.S. government has a strong bias towards gate model systems, which could hinder D-Wave's market position.
Regulatory Issues: The company is hopeful for increased interest from the U.S. government in quantum computing under the new administration, as previous challenges were attributed to a lack of appointments in technology-related positions.
Supply Chain Challenges: The CEO mentioned that system sales take time and are long lead opportunities, indicating potential delays in revenue recognition from system sales.
Economic Factors: The company is experiencing a decrease in bookings, down 64% compared to the previous year, which may indicate economic pressures affecting customer spending on quantum computing solutions.
Technological Risks: D-Wave is working on error correction and cryogenic control technologies, which are critical for their systems. The CEO acknowledged that while they are ahead in cryogenic control, they have not yet developed the necessary error correction for gate model systems.
Customer Adoption: The transition from proof of concept to production for customers is a lengthy process, which may slow down revenue growth as companies take time to integrate quantum solutions into their operations.
Record Quarterly Revenue: Q1 revenue reached a record $15,000,000, influenced by the sale of the Advantage system.
Product Development Milestones: Advantage 2 system is expected to achieve general availability by the end of Q2.
Customer Applications: Several customer applications are moving into production, including Ford Autothon and Japan Tobacco.
Blockchain Research: D-Wave published research indicating potential for quantum computation to enhance blockchain security and efficiency.
Hybrid Quantum Solver Capabilities: New capabilities introduced to handle problems with up to 2,000,000 variables.
LEAP Quantum Launchpad Program: Strong interest in the program, with customers converting from free trials to paid engagements.
Future Revenue Expectations: Expect additional customer applications to enter production deployments over the course of 2025.
Profitability Outlook: D-Wave believes it can achieve sustained profitability with less funding than competitors.
Cash Position: Closed Q1 with a record $304,300,000 in cash, sufficient to reach profitability.
Customer Growth: Total of 133 customers, including 69 commercial customers, with increasing sales pipeline activity.
Gross Margin Expectations: GAAP gross margin for Q1 was 92.5%, indicating potential for higher margins in future system sales.
Equity Raised: D Wave raised $146,200,000 in equity through its third at-the-market common stock issuance program during the fiscal 2025 first quarter.
Cash Position: As of March 31, D Wave's consolidated cash position totaled a record $304,300,000.
Shareholders' Equity: D Wave exited the first quarter with a record $207,400,000 in shareholders’ equity.
Net Loss: The net loss for the first quarter of fiscal 2025 was $5,400,000, or $0.02 per share.
Adjusted EBITDA Loss: Adjusted EBITDA loss for the first quarter was $6,100,000, a decrease of 53% from the previous year.
The earnings call indicates strong revenue growth, improved gross margins, and strategic initiatives in quantum AI and government engagements. Despite a significant net loss, the adjusted figures show improvement. The Q&A highlights potential in national security and defense, and successful trials in optimization problems. The focus on high-margin revenue streams and strategic partnerships, along with optimistic future plans, suggest a positive sentiment. However, the lack of clarity on certain deals and the increase in operating expenses temper the outlook. Overall, the stock is likely to see a positive movement.
The earnings call reveals strong financial performance, including record revenue and a robust cash position, which supports future profitability. Product development is promising, with the Advantage2 system demonstrating quantum supremacy. While M&A strategies and quantum AI milestones lack specificity, the company's strategic priorities and advancements in cryogenic technology are positive. The Q&A section highlights a focus on growth through acquisitions and R&D, with a high customer retention rate. Overall, the sentiment is positive, with potential for stock price appreciation over the next two weeks.
The earnings call reveals strong financial performance with a 509% revenue increase, significant gross margin improvements, and reduced net losses. Additionally, D-Wave's strategic initiatives, such as the Quantum Realized Framework and new partnerships, demonstrate potential for growth. However, some concerns arise from the Q&A session, particularly regarding undisclosed partnership details and lack of clarity on future revenue run rates. Despite these uncertainties, the overall sentiment remains positive due to record revenues, profitability outlook, and robust cash position, likely leading to a positive stock price movement.
The earnings call highlights strong financial performance with a 509% increase in revenue and a significant reduction in net loss. The company has a strong cash position and aims for profitability with less investment than competitors, indicating financial health. The Q&A section did not reveal major concerns and maintained positive sentiment, although some details were withheld. The company's technological advancements and strategic partnerships add to the positive outlook. Despite some uncertainties in customer adoption and error correction, the overall sentiment is positive, likely leading to a stock price increase in the short term.
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